From a general point of view, could you list, in decreasing order, the three most attractive countries in which to establish operations in Latin America?

Source: EY 2012 Brazil attractiveness survey.Total respondents: 250.

A staggering 30.1% of the investors expect Brazil to be the leader in the energy sector by 2020.

Of the survey respondents, 78% named Brazil as the most attractive country in Latin America.

Brazil’s market size is considered to be its most attractive asset by 87% of investors. The strong entrepreneurial culture (cited by 71.9% of the respondents) has further bolstered its position as a top choice for foreign companies. Our survey findings suggest that Brazil has by far the highest awareness and attraction.

An energy leader in the making

Brazil’s oil and gas sector will drive the country’s growth in the coming years according to 44.2% of the investors. A staggering 30.1% of the investors expect Brazil to be the leader in the energy sector by 2020, a view driven by the discovery of pre-salt reserves.

Real estate and tourism prominent sectors

The Brazilian real estate and construction market is expected to witness robust growth as highlighted by 27.7% of the respondents. Tourism is another major sector, though the country’s potential as a tourist destination still remains untapped.

Questions on skills, costs and operating conditions

Labor skills rank fifth in Brazil’s most attractive criteria. Labor costs rank much lower (10th, which 40% don’t find attractive), just ahead of the political, legislative and administrative environment (11th, which 41% don’t find attractive). The low-quality, high-cost transportation system still remains a weak factor for investors (only 43.4% mentioned it as attractive).

Strong confidence in the future

Nearly 83.4% of the respondents believe Brazil’s attractiveness will improve over the next three years. Foreign investors see five main areas in which Brazil is expected to become more attractive:

Energy

Infrastructure

Green economy

Manufacturing

Tourism

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